Automotive Properties completes dealership acquisition

Automotive Properties Real Estate Investment Trust has completed the previously announced acquisition of two automotive dealership properties from AutoCanada Inc. for a total purchase price of approximately $55.5-million.

The two dealership properties included in the transaction are the BMW Laval automotive dealership property located in Laval, Que., part of the Montreal metropolitan area, and the Sherwood Park Volkswagen automotive dealership property located in Sherwood Park, Alta., part of the Edmonton metropolitan area.

The REIT has initially financed the transaction through draws on one of its existing revolving credit facilities and draws on an expanded revolving credit facility that was put in place in conjunction with the transaction.

The REIT intends to use the net proceeds from the bought deal equity offering, announced concurrently with the transaction, to repay the debt incurred to finance the transaction and for general trust purposes. Closing of the offering is expected to occur on or about Oct. 16, 2018, and is subject to customary conditions, including approval of the Toronto Stock Exchange.

About Automotive Properties Real Estate Investment Trust

Automotive Properties is an unincorporated, open-ended real estate investment trust focused on owning and acquiring primarily income-producing automotive dealership properties located in Canada. The REIT's portfolio currently consists of 42 income-producing commercial properties (representing approximately 1.7 million square feet of gross leasable area) and one development property in metropolitan markets across Ontario, Saskatchewan, Alberta, British Columbia and Quebec.